Under the Current Structure of Medicare, Economic Theory Indicates That

question 30

Multiple Choice

Under the current structure of Medicare, economic theory indicates that the movement of the baby boom generation into the retirement phase of life during the years following 2011 will

• A) reduce the share of healthcare services paid for by a third party.
• B) push both healthcare prices and expenditures upward.
• C) increase the incentive of suppliers to provide healthcare services at a low cost.
• D) increase the incentive of consumers to economize on their use of healthcare.

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Definitions:

Gainsharing

A compensation strategy where employees receive bonuses based on the savings or gains achieved by their performance improvements, fostering collaboration and efficiency.

Gainsharing

A performance-based compensation strategy where employees are rewarded for contributing to improved operational efficiency, leading to cost savings which are shared with employees.

Compa-Ratio

A metric that compares an employee's salary to the midpoint of a salary range for their position, used to gauge how competitively they are being compensated.

Merit Pay Programs

Compensation programs where employees receive bonuses or pay increases based on their performance evaluations.